Aussies Earning Big Bucks Overseas Despite Domestic Economic Prosperity

We spied an interesting article in the AFR last week profiling the huge dollars Aussies are currently earning abroad. We were particularly struck by the reported figures because whereas Australia is now regarded by most analysts as very unlikely to suffer a “double-dip” recession, much of the rest of the developed world still appears vulnerable. Yet that is still where the good money stands to be made!

US fears grow of a double dip

According to the AFR:

Australians living overseas are the fourth highest paid expatriates in the world and 27 per cent take home more than $US200,000 per year… An HSBC survey of more than 4100 expats finds two-thirds of Australians working overseas have more disposable income than at home.

Meanwhile, according to another survey quoted in the article:

expats living in Australia … will lose out in terms of salary. … In terms of disposable income, Australia ranked 19th and foreign workers [who] relocated here reported an increase in the price of everyday goods as well as higher taxes and more expensive healthcare than their home country.

So it should hardly come as any surprise that Aussies who have relocated overseas want to stay there:

About 83 pe cent of Australians living overseas wanted to remain there… Australians living overseas are in a strong financial position and many of them are repatriating their wealth.

The Australian unemployment rate fell to 5.1% in August, with over 53,000 new full time jobs created. So if Australia’s economy is booming, if we are likely to avoid a double-dip recession and the jobs market is growing, why must Aussie still look overseas to earn a reasonable salary? In the context of corporate accountants and lawyers, we would argue that it is because partners have created a cartel-like environment where they sign up for confidential wage-sharing agreements that cultivate and perpetuate low wages for junior workers (being the workers most likely to relocate abroad).

The 10 most “global” cities, according to a survey quoted in the article are:

1. New York
2. London
3. Tokyo
4. Paris
5. Hong Kong
6. Chicago
7. Los Angeles
8. Singapore
9. Sydney
10. Seoul

Meanwhile, on the topic of Australia avoiding a “double dip” reception, Freehills‘ head Richard Loveridge told our friends at Lawyers Weekly that:

“I acknowledge that there is some talk by commentators of a double dip recession, particularly in the USA and Europe,” Loveridge said. “However, for everyone suggesting that might happen, there seems to be just as many [analysts and economists] who paint a more optimistic future, particularly for the Australian economy … A fair bit of recent activity and focus has been Asian reliant,” he said. “I think it is the case that if we see solid activity throughout the Asian economies, that is beneficial for Australia, and I think that is a greater factor than any concerns regarding the performance of the American or European economies.”

It is nice of Freehills to give its staff some cause for optimism about the industry. How do partners at your firm compare? Are they still trying to paint a bleak picture to justify harsh working conditions and pay?

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